IMF raises alarm over America's debt mountain
(01-03 09:55)
The International Monetary Fund said that US actions to avoid the fiscal cliff did not go far enough to address long-term fiscal deficit and debt problems.
The lender also welcomed the deal finalized late Tuesday.
“In the absence of Congressional action the economic recovery would have been derailed,'' IMF spokesman Gerry Rice said in a statement, AFP reports.
But, he added, the Congress made little progress on dealing with the US deficit, and the need to increase the country's statutory debt ceiling to keep funding that deficit.
“More remains to be done to put US public finances back on a sustainable path without harming the still fragile recovery,'' Rice said. “Specifically, a comprehensive plan that ensures both higher revenues and containment of entitlement spending over the medium term should be approved as soon as possible.’’
Additionally, he said, “it is crucial to raise the debt ceiling expeditiously and remove remaining uncertainties about the spending sequester and expiring appropriation bills.’’
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